Amazon hits retailers with ‘extra fuel’ as Iran war drives global energy market

The war in Iran has disrupted oil markets around the world, and gas prices in the US high speed. Amidst the increase in transportation costs, Amazon has implemented a 3.5% fuel surcharge for sellers who use the distribution system. This plan has the potential to bring new revenue to countless merchants who rely on the e-commerce giant to sell their products.

Amazon told TechCrunch that the rate hike could happen in the future, though the company said it would continue to evaluate how things might change as the market changes. The story was report first and Bloomberg.

“Rising prices of fuel and raw materials have increased the cost of labor in all industries,” the spokesman said. “We’ve had these increases so far, but like other major drivers, when prices go up we use temporary tolls to recoup those costs.” The spokesman added that the interest rates are “very low compared to what other majors carry.”

The new policy will come into effect on April 17 and will affect retailers who use the company Fulfillment by Amazon serviceBloomberg writes. Fulfillment by Amazon, also known as FBA, allows companies to ship their products to Amazon’s warehouses, where they are packaged and shipped to consumers. Amazon doesn’t disclose how many merchants use FBA, but the program supports a growing number of third-party sellers on its platform.

Amazon initially launched an additional version of this product in 2022—which, not coincidentally, was the deadline Crude oil sells for $100 a barrel. What happened in 2022? Russia had just invaded Ukraine, sending electricity markets haywire. Today, the war on Iran is encouraged by the Trump administration and the Israeli government execution of The Supreme Leader of the tribe—also shook the markets in the same way.

Iran is located on the northern border of the Strait of Hormuz – the world’s narrowest but most critical oil shipping channel through which about 20% of the world’s oil flows – and the country they wanted to block the sea lanesthe move that has been made very sensitive global electricity prices.